12/03/2013 17:07
Gucci had 25 stores in 17 Chinese cities as of January, when it opened three new stores. It is looking to open its Shanghai flagship store in May.LVMH claims business private tour of China profit was up 2.1 percent from a year earlier to 3.63 billion euros in 2008, but sales in the United States fell 4.03 percent and in Japan 5.16 percent last year. However, the group stressed in its annual report that performance in China was "solid" and strong.Cartier, the French jeweler and watchmaker, is planning more stores in first and second-tier Chinese cities after posting double-digit growth in 2008.
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Yan Jun, managing director of Beijing-based Ecole Fashion & Luxury Consulting Ltd., says the expanding middle class constitutes an important group of consumers Yangtze river tour who desire and can afford luxury goods."Aged between 25 and 40 and living in developed regions, they are fashionable, mature, and passionate about lifestyle and quality," he says.Up to 170 million people, or 13 percent of the population, can afford luxury brands and the number will reach 250 million next year, according to the China Association of Branding Strategy.The government aims to build "Yangtze river cruise a well-off society" by 2020, with per capita GDP of 3,000 U.S. dollars. Developed regions, such as Shanghai, Beijing, Guangzhou, Shenzhen, Suzhou and Wenzhou, with a total population of more than 300 million, will see per capita GDP exceed 15,000 U.S. dollars.
Bain & Company predicted the Chinese luxury market would see growth of 20 to 35 percent in the next five years. The Ministry of Commerce says China will become the world's largest luxury market by 2014, accounting for 23 percent of global business."It is almost certain that China has surpassed the United States to become the second largest luxury market after Japan. There is still a lot of room for development," says Yan Jun.He believes the huge potential will definitely attract more brands."I am going to Italy to give a lecture about luxury management in China this June. I have been told a lot of executives of luxury companies will attend and they are eager to know China tourism more about the Chinese market and how to enter the market," says Yan."The Chinese market is so desirable that international luxury companies are speeding up their quest for a share."Want to know more about trend of luxury market?
